Press Release
August 1, 2017
DSM reports H1 2017 results
DSM maintained its positive momentum with a very strong first half-year performance with Q2 another very good quarter.
Heerlen, NL, 01 Aug 2017 07:00 CEST
Highlights H1
- Continued good performance in Q2 concludes very strong H1
- Sales up 11% to €4,320m, with 8% organic growth
- Adjusted EBITDA up 16% to €721m, driven by both Nutrition and Materials
- ROCE up 170 bps to 12.2%
- Net profit up 42% to €312m
- Interim dividend of €0.58 per ordinary share
- Outlook 2017: slightly improved
Key figures and indicators
| in € million | H1 2017 | H1 2016 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 4,320 | 3,907 | 11% | 6% | 2% | 3% | 0% |
| Nutrition | 2,778 | 2,545 | 9% | 5% | 1% | 3% | 0% |
| Materials | 1,426 | 1,240 | 15% | 8% | 5% | 1% | 1% |
| Adjusted EBITDA | 721 | 624 | 16% | ||||
| Nutrition | 528 | 462 | 14% | ||||
| Materials | 241 | 212 | 14% | ||||
| EBITDA | 689 | 603 | |||||
| ROCE (%)1 | 12.2% | 10.5% |
1) January up until June
CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “DSM maintained its positive momentum with a very strong first half-year performance. The second quarter was another very good quarter.
Halfway through Strategy 2018, we are well ahead of our targets. All businesses are delivering on their growth initiatives, helping us outpace the market; we increasingly provide our customers with innovative solutions, resulting in a continued shift toward specialties. Furthermore, we are fully on track with our wide-ranging cost-reduction and efficiency improvement programs, while anchoring the high-performance culture we strive for. We also continued to make good progress with our sustainability agenda, future-proofing our operations and delivering products and solutions which help our customers to make their businesses more sustainable. The expected Patheon transaction demonstrates our commitment to monetize the significant value within our associates and earlier than anticipated.
While being mindful of the volatile macro-economic environment and the higher-base results achieved since 2015, we are confident for the remainder of the year and have increased our outlook for the full year."
Outlook 2017 slightly improved
DSM now expects to deliver full-year 2017 results above the targets set out in its Strategy 2018, with an EBITDA growth for the year moving slightly up from high single-digit to double digit, and with a ROCE increase moving from double digit basis points to over 100 basis points.
Q2 Highlights
- DSM reports a very good Q2
- Sales up 8% to €2,161m, with 6% organic growth
- Adjusted EBITDA up 15% to €376m
- Nutrition: 4% organic sales growth; Adjusted EBITDA up 14%
- Materials: 4% volume growth; Adjusted EBITDA up 9%
Key figures and indicators
| in € million | Q2 2017 | Q2 2016 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 2,161 | 1,994 | 8% | 4% | 2% | 2% | 0% |
| Nutrition | 1,380 | 1,295 | 7% | 4% | 0% | 3% | 0% |
| Materials | 725 | 640 | 13% | 4% | 7% | 1% | 1% |
| Adjusted EBITDA | 376 | 328 | 15% | ||||
| Nutrition | 271 | 237 | 14% | ||||
| Materials | 128 | 117 | 9% | ||||
| EBITDA | 355 | 332 | |||||
| ROCE (%)1 | 12.2% | 10.5% |
1) January up until June
Key figures and indicators
| in € million | H1 2017 | H1 2016 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 4,320 | 3,907 | 11% | 6% | 2% | 3% | 0% |
| Nutrition | 2,778 | 2,545 | 9% | 5% | 1% | 3% | 0% |
| Materials | 1,426 | 1,240 | 15% | 8% | 5% | 1% | 1% |
| Innovation Center | 84 | 83 | 1% | 6% | -6% | 1% | 0% |
| Corporate Activities | 32 | 39 |
| in € million | Q2 2017 | Q2 2016 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 2,161 | 1,994 | 8% | 4% | 2% | 2% | 0% |
| Nutrition | 1,380 | 1,295 | 7% | 4% | 0% | 3% | 0% |
| Materials | 725 | 640 | 13% | 4% | 7% | 1% | 1% |
| Innovation Center | 41 | 40 | 3% | 9% | -7% | 1% | 0% |
| Corporate Activities | 15 | 19 |
| in € million | H1 2017 | H1 2016 | % change | Q2 2017 | Q2 2016 | % change |
|---|---|---|---|---|---|---|
| Sales | 4,320 | 3,907 | 11% | 2,161 | 1,994 | 8% |
| Adjusted EBITDA | 721 | 624 | 16% | 376 | 328 | 15% |
| Nutrition | 528 | 462 | 14% | 271 | 237 | 14% |
| Materials | 241 | 212 | 14% | 128 | 117 | 9% |
| Innovation Center | 1 | 1 | 0 | 0 | ||
| Corporate Activities | -49 | -51 | -23 | -26 | ||
| Adjusted EBITDA margin | 16.7% | 16.0% | 17.4% | 16.4% | ||
| EBITDA | 689 | 603 | 355 | 332 | ||
| Adjusted EBIT | 478 | 396 | 21% | 256 | 211 | 21% |
| EBIT | 441 | 375 | 235 | 215 | ||
| Capital Employed | 7,692 | 7,616 | ||||
| Average Capital Employed | 7,831 | 7,542 | ||||
| ROCE (%) | 12.2% | 10.5% | ||||
| Effective tax rate | 18.0% | 18.5% | ||||
| Adjusted net profit | 338 | 244 | 39% | 175 | 135 | 30% |
| Net profit - Total DSM | 312 | 220 | 42% | 163 | 135 | 21% |
| Adjusted net EPS | 1.90 | 1.36 | 40% | 0.98 | 0.76 | 29% |
| Net EPS - Total DSM | 1.75 | 1.22 | 0.91 | 0.76 | ||
| Cash Flow | 329 | 319 | 3% | 133 | 182 | -27% |
| Capital Expenditures1 | 250 | 177 | 120 | 78 | ||
| Net debt | 2,205 | 2,466 |
1) Cash, net of customer funding
In this report:
a) ‘Organic sales growth’ is the total impact of volume and price/mix;
b) ‘Total Working Capital’ refers to the total of ‘Operating Working Capital’ and ‘non-Operating Working Capital'
The complete version of this press release with accompanying financial statements and the Presentation to Investors are below in PDF format.